New proposal calls for countywide payroll tax for housing and homeless services

OLYMPIA, Wash. — Seattle's short-lived head tax divided the city in 2018.

The City Council passed a $275 per-worker tax on big employers, then repealed it a month later.

A new bill in the state Legislature would allow King County to pass a payroll tax to start next year of between one-tenth of 1% and two-tenths of one percent, paid by most businesses with employees making at least $150,000 annually.

The bill would allow the tax money to be used for housing and homeless services.

A countywide tax is estimated to raise about $100 million per year.

"I think people want solutions," said Seattle Mayor Jenny Durkan, who supports the bill.

King County Executive Dow Constantine also supports it, and suggests businesses are on board.

"I think the only way a bill is going to get out of Olympia is if business and labor all agree on the terms and I think the elements of that are already in the works," Constantine said.

KIRO 7 reached out to several big employers asking for interviews.

Amazon, which fought the 2018 Seattle head tax, never responded.

Microsoft, Starbucks, Redfin, REI, Alaska Airlines, Puget Sound Energy and Facebook said they couldn't do interviews Thursday.

Boeing had no comment.

Expedia did express support, with Chief Legal Officer Bob Dzielak writing, "We are proud to contribute toward the revenue needed to address these issues in the form of a new tax that can make a meaningful impact."

"It seems like Seattle's bad ideas are spreading statewide and this is what a lot of people are afraid of," said Caleb Heimlich of the Washington State Republican party. "Taxing jobs is not the right way to go."

A hearing on the state legislation is scheduled for next week.